MTUC Proposes RM3,100 as New Minimum Wage Reference

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has proposed that a decent living wage of RM3,100 per month be used as a reference for the new minimum wage rate, taking into account various factors including the rising cost of living.

Its Secretary-General, Kamarul Baharin Mansor, said it should also take into account inflation, food prices, housing, transportation and increasing basic needs.

He said, the implementation of a minimum wage scale structure is also hoped to be extended to middle-income workers to ensure income increases are in line with skills, education and work experience.

“The step is important to address the issue of skills mismatch as well as enable companies to retain quality talent, thus supporting productivity and wage growth.

“There are workers who are still earning RM1,700 even though they have served for 10 years due to the absence of a wage structure,” he said according to Bernama.

Kamarul said, the government’s step of reviewing the minimum wage rate is appropriate for workers in this country.

“Based on the National Wage Consultation Act, it requires a review of the minimum wage rate to be conducted every two years, so there are five months remaining before the announcement of the new rate must be made.

“Based on the increase in the minimum wage rate implemented in February 2025, the new rate should take effect in February 2027.

“The delay in providing a new minimum wage rate could result in workers being under greater pressure with the increasing cost of goods,” he said.

He said, MTUC is ready to cooperate with the government through the National Wage Consultation Council (MPGN) to submit ideas and views regarding the new minimum wage rate.

Last Tuesday, Human Resources Minister R Ramanan was reported to have said that the minimum wage rate is being reviewed to determine whether the current rate of RM1,700 per month is retained or raised to a new level.

FMT